Commods returns seen strong another 2 yrs -Goldman

NEW YORK, Nov 10 (Reuters) - Returns from commodities are
expected to remain strong up to another two years as prices of
key raw materials such as oil, copper and corn rise further
from supply deficits, Goldman Sachs (GS.N) said on Tuesday.

Wall Street's most-watched investment banker and commodity
markets mover said it was also bullish on gold after a streak
of record highs above $1,000 an ounce in the precious metal.

"For gold, the ongoing shift of central banks and
governments from being net sellers of gold to net buyers in the
context of declining real rates have continued to lend support
to prices, with risks remaining to the upside despite recent
gains, in our view," Goldman said in a research note.

"Going forward, we maintain that key commodities across the
complex including oil, copper and corn, will shift into global
deficits in the coming months owing to a combination of demand
and supply drivers, which would likely generate substantial
further price and returns upside," Goldman said.

The uptrend could continue for up to two years, with
intermittent volatility, it said.

Goldman also projected returns of 17.5 percent over a
12-month period on the S&P GSCI Commodities Index .SPGSCI and
recommended investors to be overweight commodities.

"We believe that the recent performance is just the
beginning of strong expected commodity returns over the coming
12 to 24 months," it said.

Goldman's commodity price forecasts:
Energy 3-month 6-month 12-month
WTI crude /barrel CLc1 $85 $90 $95
Brent crude /barrel LCOc1 $83.50 $88.50 $93.50
RBOB gasoline /gal RBc1 $2.16 $2.40 $2.38
USGC heat. oil /gal HOc1 $2.24 $2.40 $2.57
NYMEX nat. gas/mmbtu NGc1 $6.50 $7.50 $7.50
UK NBP nat. gas/pence per therm 34.00 39.50 46.60
Industrial metals
LME aluminium /tonne MAL3 $1,700 $1,720 $2,050
LME copper /tonne MCU3 $6,960 $7,080 $7,530
LME nickel /tonne MNI3 $17,420 $17,580 $18,780
LME zinc /tonne MZN3 $1,870 $1,860 $2,160
Precious metals
Spot gold /ounce XAU= $960 $960 $960
Spot silver /ounce XAG= $15.60 $15.50 $16.00
Agriculture
CBOT wheat /bushel Wc1 $5.00 $5.00 $5.50
CBOT soybeans /bushel Sc1 $10.00 $10.00 $10.00
CBOT corn /bushel Cc1 $4.00 $4.00 $4.50
ICE cotton /lb <0#CT:> $0.60 $0.65 $0.65
ICE coffee /lb <0#KC:> $1.30 $1.35 $1.40
ICE cocoa /tonne <0#CC:> $2,700 $2,700 $2,700
ICE sugar /lb <0#SB:> $0.20 $0.17 $0.17
CME live cattle/lb LCc1 $0.85 $0.90 $1.10
CME lean hogs /lb LHC1 $0.65 $0.65 $0.80
(Reporting by Barani Krishnan; Editing by Lisa Shumaker)